Almost everyone is dead. Jorrus and Rayth are the only party members left alive. The group was ambushed by myconids, giant anthropomorphic carnivorous mushrooms. After a long struggle, and some help from the newcomer Vince Kingfisher, the survivors destroyed the over-sized mushrooms and emerged with their lives.
They camped in the house once occupied by Farmer Aederr. They were able to track the young blight dragonling to a nearby lake. After a fierce combat they slew it and burned the remains that were not harvested.
Jorrus, Rayth, and Vince are now on their way back to Broken Hills to return to The Shadow.